Final Project: Theft, Internal, And External Controls

Final Project: Theft, Internal and External Controls When owning your own business, especially a restaurant, the potential for theft exists both externally and internally. It is so important for you to remain alert to the revenue security problems that will arise. There are several reasons why a revenue shortage might occur. Both restaurant guests and your actual employees can be threats to revenue, as well as vendors and their delivery drivers, and others you might trust like book keepers and maintenance repairman.
External Theft:
External theft can occur during deliveries and other receiving procedures from the vendors to the restaurant. Every product ordered needs to be accounted for. Unfortunately, employees and the delivery person exchange

Criminal activity is another cause of theft in the restaurant industry. This should be a major concern for restaurant owners and operators. Precautions against burglary and criminal activity must be in place to protect everyone involved as well as your assets. It is imperative to think about the safety of your establishment by installing more lighting around the premises, extra lighting in parking lots, and around the interior of the restaurant. It will help safeguard the area by increasing visibility and making it less susceptible to crime. Installing surveillance cameras outside the building as well as inside can help record any activity happening in and around your restaurant. It also can be used as evidence later on if

The National Restaurant Association estimates that employee theft accounts for about 75% of a restaurant's inventory losses, equal to a loss of over 3 % of its annual sales on average. Internal theft is considered stealing cash, food, alcohol, supplies, equipment, gift cards, and retail items. I know we don’t live in a perfect world but I would take many steps to try to prevent internal theft from happening in my restaurant. I would try my best to make sure I hire honest, ethical and truthful people. I would welcome them onboard as part as my restaurant staff, and treat them with respect. Without substantial evidence, there is no reason to believe that my employees are thieves. Upon hiring a new employee, I will make sure all employees are well-trained from the very beginning. We will take the time to teach a new employee all they will need to know about how to succeed in their new position, clearly explain protocols, and make them feel like a team player. Educating your staff properly leads to better employee retention and improved productivity, which in turn leads to increased profits overall, in my opinion. When you offer your employees a chance to help and take responsibility for the restaurant, chances are they will feel empowered to do